Start Business

MSME Udyam Registration

Union MSME Ministry launched the Udyam Registration Portal on 1st July 2020. The portal has proven its worth both in terms of flexibility and features. At present, the portal has more than 11 lakh registered MSMEs (Micro, Small and Medium Enterprises) that have completed their registration process on a self-declaration basis. The Finance Minister introduced this registration process as a part of the Prime Minister’s relief package amid Covid 19 pandemic. Every businessman has somewhat idea about Udyam registration that these are for getting benefits of government schemes but the confusion in the minds is what is the difference between MSME Registration and Udyam Registration?

Classification of Enterprises

Micro Enterprise

  • Manufacturing Sector : Investment < Rs. 25 Lakhs
  • Service Sector : Investment < Rs. 10 Lakhs
  • Investment: Less than Rs. 1 Crore
  • Annual Turnover: Less than Rs. 5 Crore
  • A Micro Enterprise is defined as one where the investment in plant and machinery or equipment does not exceed Rs. 1 Crore, and turnover does not exceed Rs. 5 Crore.

Small Enterprise

  • Manufacturing Sector : Investment < Rs. 5 Lakhs
  • Service Sector : Investment < Rs. 2 Crore
  • Investment: Less than Rs. 10 Crore
  • Annual Turnover: Less than Rs. 50 Crore
  • A Small Enterprise is defined as one where the investment in plant and machinery or equipment does not exceed Rs. 10 Crore, and turnover does not exceed Rs. 50 Crore.

Medium Enterprise :

  • Manufacturing Sector : Investment < Rs. 10 Crore
  • Service Sector : Investment < Rs. 5 Crore
  • Investment: Less than Rs. 50 Crore
  • Annual Turnover: Less than Rs. 250 Crore
  • A Medium Enterprise is defined as one where the investment in plant and machinery or equipment does not exceed Rs. 50 Crore, and turnover does not exceed Rs. 250 Crore.

Benefits of MSME/Udyam Registration

  • Get access to the government special tenders which are open for MSME industry only.
  • Can avail a bank loans at cheaper interest rates.
  • Benefits of tax rebates.
  • Patent registration at lower cost.
  • Preference for government licenses and certifications.
  • Access to all state and central government schemes.Benefits of tax rebates.
  • Patent registration at lower cost.
  • Preference for government licenses and certifications.
  • Access to all state and central government schemes.

Documents Requirement

  • PAN Card: Details of the proprietor, directors, or partners.
  • Aadhar Card: Details of the proprietor, directors, or partners.
  • Proof of Office Ownership: Allotment Letter, Lease Agreement, Possession Letter, or Property Tax Receipt.
  • Rent Agreement (if applicable): Along with No-Objection Certificate (NOC) from the landlord and a utility bill.
  • Purchase Bill: For each raw material purchased.
  • Sale Bill: For each end product sold.
  • Partnership Deed: If applying as a Partnership Firm.
  • Company Documents: Memorandum of Association (MOA) Articles of Association (AOA) Certificate of Incorporation (COI) Board Resolution authorizing the director to sign the application (for Private Limited Companies).
  • Industrial License: Under the Industrial Development and Regulation Act, 1951 (if applicable).
  • Affidavit: On Rs. 10/- Non-Judicial Stamp Paper, attested by Notary, declaring power requirements and machinery status.
  • Machinery Purchase Bill: For purchased machinery.
  • Plant and Machinery Installation Bills.
  • Bank Account Statement.

Registration Process of MSME/Udyam Registration

Go on the official website of Udyam registration i.e. Udyamregistration.gov.in.

Home wage of the site open and provide an option to select the category i.e.

  • If you are a new entrepreneur then click over the option of For “New Entrepreneurs who are not Registered yet as MSME or those with EM-II”; and
  • If your case is to migrate Udyam Aadhar to re-register UAM then click over the option of “For those already having registration as or “For those already having registration as UAM through Assisted filing”.
Mar 23, 20
When the new entrepreneur proceeds with the above step then a page will open in which the entrepreneur is required to fill its Aadhar number and name as per Aadhar card and validate it with OTP on its mobile number linked with its Aadhar card.
Mar 23, 20
Mar 23, 20
Now the further the form will open and the applicant is required to fill the details as demanded by the form and registration will be completed by entering a captcha code and a click on submit button.
Mar 23, 20
Mar 23, 20
In case of “For those already having registration as or “For those already having registration as UAM through Assisted filing” the applicant will be shown a screen demanding for UAM number and validation with OTP which will be send on registered E-mail or Mobile number at the option of applicant. After validation the registration process will be completed.
Mar 23, 20

How to check Udyam Registration Status?

  • Step 1: Visit:- https://udyamregistration.gov.in/PrintUdyamCertificate.aspx
  • Step 2: Enter the Udyam Registration Number and registered phone number.
  • Step 3: Chose the apt ‘OTP’ option.
  • Step 4: Finally, tap on the Validate and Generate OTP.

Frequently Asked Questions

Find answers to common questions about Private Limited Company registration

Does for the small business, the Private Limited Company registration will be benefited?

Yes, for small business it is preferable to register under private limited company registration in India. It provides them the credibility and a image of their business in the eye of financial institution, suppliers & potential clients. It helps the company in obtaining the loans at little compliance from the banks or potential clients while entering into any deal.

An approved name shall be valid for a period of 20 days from the date of approval of such name

A private limited company must have minimum 2 directors and can have a maximum of 15 directors and a minimum of 2 shareholders are required maximum number of shareholders is 200.

Yes, a person can become a Director as well as a shareholder and vice versa as a Company is a Separate Legal Entity.

As per Companies Act, 2013 there is no minimum capital required for incorporating a Public Limited Company but generally people prefer and advised to incorporate the same with a minimum capital of INR. 5 Lacs.

Yes, a NRI or a Foreign National can become a shareholder and Director (post obtaining the Director Identification Number). However one Director of the Company should be Indian Resident.

A Member who has agreed to subscribe the shares shall be required to deposit the money in the bank account at the earliest and shall file a form for commencement within 180 days from the date of incorporation of the Company.

No, the money deposited cannot be withdrawn but the same can be used by the Company for its official purpose like for paying salary to staff members and employees, other administrative expenses etc.

Yes, a Private Limited Company can carry on multiple related business activities if the same is mentioned in the company’s objects which must be approved by the registrar. one cannot operate entirely different business activities like construction and the food company under one name but related activities can be performed.

Scroll to Top